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Multi-billion pound deal for Sellafield

By Alan Irving

Last updated at 15:30, Monday, 27 February 2012

Sellafield has struck a massive £1.5 billion deal covering services to the nuclear site over the next 15 years.

And more deals in the pipeline are likely to net contractors’ £9 billion all told.
Although the initial mega £1.5 billion contract is shared between six international companies in two major consortiums, nuclear chiefs predict that West Cumbria’s economy will see the rewards.
There is to be a commitment wherever possible to sub-let contracting work to local firms.
The £1.5 billion contract is for specialist design, engineering and safety case assessments.
Sellafield Ltd say it is the first in a series of long-term contracts expected to be worth around £9 billion.
Over the next two years the site’s operators will negotiate the deals under what is described as “a new approach to sub-contracting” introduced by its parent organisation, the American-led Nuclear Management Partners.
The framework DSA contract (Design Services Alliance) is the first of its kind for Sellafield Ltd towards the huge task of cleaning up and decommissioning Europe’s most complex nuclear site. It is said to be a milestone for both Sellafield and the UK nuclear industry.
Working with major contractors long term the aim is to deliver greater quality more efficiently through longer-term contracts.
Sellafield Ltd says the DSA will provide the supply chain with planning opportunities for staff development and encourage investments in local infrastructure and resources.
Sellafield commercial director Keith Case explained: “We are changing the way we acquire goods and services. These new contracts will bring stability and certainty to the supply chain and are excellent news for West Cumbria. Effective supply chain engagement through long-term collaborative alliance is key to Sellafield Ltd delivering and exceeding commitments made in our performance plan.”
Tom Jones, chair of the AXIOM joint venture, stressed that “full and total co-operation with the local supply chain is top priority”.